Delonte Turner Survey of International Bus HW 10 1. The most favored nation (MFN) principle assures equal treatment for all trading partners in international trade. A nation that awards another MFN status agrees to give another nation the same trade benefits as they do to their most preferred trading partner, such as lower tariffs or more advantageous trade terms. This idea encourages justice and equality in international trade. 2. Members of the WTO may stray from the MFN principle in some situations, such as when they join customs unions or regional trade agreements. Such agreements permit nations to grant one another advantageous trade conditions without also granting them to all WTO members. The creation of trade blocs and regional integration are permitted by this exception. 3. The General Agreement on Tariffs and Trade (GATT) is expanded upon by the World Trade Organization (WTO), which goes beyond mere tariffs. The WTO addresses a wider range of trade-related concerns, such as services, intellectual property, dispute resolution, and trade facilitation, whereas the GATT largely concentrates on lowering tariffs and trade barriers. In comparison to GATT, the WTO is a more comprehensive organization because it has the responsibility of monitoring and enforcing trade agreements. 4. To identify whether items are eligible for preferential treatment inside the region, free trade areas establish rules of origin. These regulations specify requirements goods must meet to be considered as coming from the free trade area. This promotes fair competition by preventing non-members from abusing the preferential trade terms and ensuring that advantages are only granted to goods produced in the region. 5. The European Economic Community (EEC), which had as its goal the creation of a common market among its member nations, was founded in 1957 after the signing of the Treaty of Rome. By removing trade restrictions like tariffs and quotas and promoting the free flow of people, capital, products, and services inside the EEC, the main objective was to advance economic integration. The treaty served as the cornerstone for the creation of the European Union (EU) and opened the door to closer political and economic cohesion among the nations of Europe.
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